Stop the agony

Quote












Anonymous said:
When is the Buyout going to happen?
Click to expand...

Definitely before April 26. If not, Akorn would have to pay millions of dollars as a penalty fee to Hi Tech.

If HI Tech Pharmacal Co. cancels its pending acquisition by Akorn Inc. because of a higher bid, it would have to pay the Lake Forest-based generic drug company a breakup fee of $20.8 million, or about 3 percent of the $640 million purchase price, according to a Sept. 9 filing by the Amityville, N.Y.-based firm with the Securities and Exchange Commission. The fee sets a floor for any rival bid that would have to top Akorn's price, which is equal to $43.50 a share. Akorn would have to pay $41.6 million if the deal falls apart because it can't arrange financing or gain regulatory approval by April 26, according to the filing, a financial report for HI Tech's fiscal first quarter, which ended July 31. The company makes a generic version of Flonase, a popular nasal spray used for allergies. Executives with the two firms did not return calls requesting comment.

http://www.chicagobusiness.com/arti...r-hi-tech-must-top-akorn-offer-by-21-million#
 






It just seems as though Akorn, is no longer interested in Hi-Tech. Paying 46M to ditch the deal is better than paying 640M for a worthless investment. Besides, since Akorn's initial buyout announcement they've purchased 3 branded Opthalmic meds from Merck. It really sounds like Akorn's focus is Generic & Branded Opthalmics. The Health care division & ECR Pharma, doesn't fit Akorn's niche.
 






Anonymous said:
It just seems as though Akorn, is no longer interested in Hi-Tech. Paying 46M to ditch the deal is better than paying 640M for a worthless investment. Besides, since Akorn's initial buyout announcement they've purchased 3 branded Opthalmic meds from Merck. It really sounds like Akorn's focus is Generic & Branded Opthalmics. The Health care division & ECR Pharma, doesn't fit Akorn's niche.
Click to expand...

Yes you are correct.http://www.marketwatch.com/story/10-k-akorn-inc-2014-03-14
 












Anonymous said:
Yes you are correct.http://www.marketwatch.com/story/10-k-akorn-inc-2014-03-14
Click to expand...

This articles says that Akorn has three identified operating segments. Contract Services is the most interesting because ECR contracts to sell other companies drugs. So the Million dollar question is, if Akorn isn't interested in the "sales of various drugs" that they manufacture, then why would Akorn be interested in keeping ECR? ECR, doesn't manufacture ANY of its drugs. Below, is what Akorn said.


three identified operating segments

"§ Ophthalmic - sales of diagnostic and therapeutic ophthalmic drugs and over-the-counter eye care products

§ Hospital Drugs & Injectables - sales of diagnostic and therapeutic injectables and other hospital drugs, as well as biologics and vaccines

§ Contract Services - sales of various drugs that we manufacture for others to be sold under their own brand names

If
 












Top Bottom
Back
Quote